Question: 3 - Yr . Treasury yield is 2 % , 5 - Yr . Treasury yield is 4 % , 1 0 - Yr .

3-Yr. Treasury yield is 2%,5-Yr. Treasury yield is 4%,10-Yr. treasury yield is 7%. A yield on prime bonds (with an average maturity of about 10 years) is 8%. What is the cost of financing a 3-year project?

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